Genesee & Wyoming earnings beat Street

Genesee &
Wyoming reported second quarter net income of $20.6 million or 49 cents per
diluted share, exceeding the Wall Street estimate of 44 cents. This compares
with earnings of $7.4 million or 20 cents per share in the second quarter of
2009.

Total revenues
were up 2% to $158.5 and freight revenue increased 26% to $100.2 millio

GWI's operating
income in the second quarter was $37.9 million, an increase of $23.2 million
compared with $14.6 million in the second quarter of 2009. The operating ratio
dropped to 76.1%, down from 88.7% a year ago.

GWI noted that
in June 2009, its subsidiary, Huron Central Railway Inc. (HCRY), intended to
cease operations. As a result, GWI's results in the second quarter of 2009 included
a non-cash write-down of HCRY's non-current assets of $6.7 million and related
charges of $2.3 million, partially offset by a tax benefit of $3.6 million (net
after-tax impact of $5.4 million, or $0.15 per diluted share). GWI has
continued to operate HCRY under a temporary operating agreement that terminates
in mid-August 2010, unless renewed by the affected parties